IT in most organizations has grown at an unmanageable pace to keep up with the ever changing business and beat the technology obsolesce. In all this haste, there has been little time to focus on crafting a supplier strategy. As a result, IT landscapes have witnessed a proliferation of vendors. This undesirable fragmentation leads to operational overheads, higher costs, process variance, and lack of strategic direction—sub optimal service framework. Spurred by business demands and technology change, corporate IT organizations looked to overcome resource shortage and fill gaps by taking on a mix of independent contractors, staffing agencies and domestic and offshore service providers. In the process of outsourcing, bringing disparate external staffing and sourcing operations together has been part of larger effort, ranging from the centralization of sourcing management and governance to the transformation of the sourcing strategy as a whole and its alignment with the client business strategy.
Existing prior art does not suggest or anticipate a process for contractor evaluation and consolidation for the purpose of outsourcing. There is no formal process or methodology in place for contractor consolidation. Therefore, there is a need for a contractor consolidation process to assess the contractor base of an IT organization for consolidation.